Tokyo Stocks Waver on Bank Caiptal Worries

Darlington Musarurwa
17 Dec, 2009
New York City

Fuji Electric Holdings Co., Ltd led the decliners in the index with a loss of 3%. Mitsubishi UFJ Financial announces additional newly issued stocks. Banks declined ahead of the Basel regulators statement. American Airlines may increase its $1.1 billion offer for JAL to keep it in One World Alliance.

[R]7:00 AM Tokyo, Japan – Fuji Electric Holdings Co., Ltd led the decliners in the Nikkei 225 index with a loss of 3.3%. Mitsubishi UFJ Financial Group Inc. announces additional newly issued stocks. Banks declined ahead of the Basel regulators statement. American Airlines may increase its $1.1 billion offer for JAL to keep it in One World Alliance.[/R]

Japan’s market averages dropped led by financial and realty stocks as auctions of closed homes advanced 22% to 2,795 units in September, and a rising yen.

The yen closed up 0.2% to 89.89 against the United States dollar.

In Tokyo trading Nikkei 225 Index declined 0.1% or 13.6 to 10,163.80, and the broader Topix Index slipped 0.2% to 896.28.

In the first section of the Tokyo Stock Exchange 19 billion shares worth 1.2 trillion yen were traded and in the second section 54 million shares valued at 4 billion yen changed hands.

Of the Nikkei 225 index stocks, 131 gained, 58 dropped, and 11 were unchanged. Pacific Metals led gainers in the index stocks with a rise of 7.3% as gold prices gained 1.2% to $1,136 per ounce and crude oil prices climbed 3.3% to $73.10 per barrel.

Japan Household Assets Falls 0.7% in September

Nikkei News reported today a preliminary report from Bank of Japan showed the value of household financial assets fell 0.7% to 1.4 trillion yen at the end of September after dropping 2.9% in the June quarter.

Household financial wealth shrank 0.2% to September.

The report notes that equity securities accounted for 99.76 trillion yen of household financial assets at the end of September.

Total value of investment trusts held by households fell 12.1%, while holdings cash and deposits increased 1.5% to 790 trillion yen, “as people socked away more assets in time deposits in search of lower risks.”

American Air Proposes JAL Exclusive Asian Partner

Japan Today reported that American Airlines chief executive Gerard Arpey has proposed for Japan Airlines to be its exclusive Asian partner.

American Air is also expected to sweeten the $1.1 billion offer rivaling a competing bid by SkyTeam alliance led by Delta Airlines.

Details of the revised terms emerged after the American carrier’s boss met with Japan’s transport minister Seiji Maehara.

Nikkei Movers

Fuji Electric Holdings Co., Ltd led the decliners in the Nikkei-225 index with a loss of 3.3% followed by losses in Daiwa Securities Group Inc of 2.8%, in Mitsubishi Estate Company, Limited of 2.6%, in Casio Computer Co Ltd 2.4% and in Ebara Coporation 2.4%.

Pacific Metals Co., Ltd led gainers in the Nikkei-225 index with a rise of 7.3% followed by gains in Pioneer Corporation 5.8%, in Nippon Oil Corporation of 5.4% and in Nippon Mining Holdings Ltd of 5.2%.

Other Movers

Inpex Holdings Inc increased 3.6% to ¥683,000.00.

Mitsubishi UFJ Financial Group, Inc declined 1.2% to ¥464.00 said that it has determined the amount for the newly issued stock (disclosed on November 30, 2009) through exercising rights of overseas underwriting company. The amount is 163,000,000 shares.

Mitsubishi Estate Company, Limited the property developer dropped 2.6% to ¥1,492.00 and Mitsui Fudosan Co., Ltd slipped 0.8% to ¥1,584.00.

Pacific Metals Co., Ltd the nickel producer increased 7.3% to ¥627.00.

Sumitomo Mitsui Financial Group, Inc decreased 1.4% to ¥2,985.00 after the lender said global regulators will give banks a grace period before forcing them to implement stricter capital rules. Later, Basel Banking Supervision Committee issued a statement confirming that the banks will have enough time to meet new capital requirements but international banks will be required to meet 30 days of global liquidity in its reserves.

The Sumitomo Trust and Banking Company, Limited fell 1.0% to ¥462.00.

Sumitomo Realty & Development Co., Ltd decreased 1.2% to ¥1,742.00 after the real estate company will offer ¥10 billion five-year straight corporate bonds due December 19, 2014, with interest rate of 1.48%. The payment date of the bonds will be December 21, 2009 according to Dow Jones reported.